"Star Market Daily" news on October 16th (by reporter Li Mingming) "The most outstanding venture capital" Hefei Chantou will once again lay out a important semiconductor field.

After a 5-day trading suspension, when Wenyi Trinity Technology resumed trading on the first day (October 16th), the stock price soared limit-up, with the latest price at 26.35 yuan per share, totaling a market cap of 4.175 billion yuan.

Just on the evening of October 15th, Wenyi Trinity Technology announced that its controlling shareholder, Tongling Sanjia Electronics (Group) Co., Ltd. (referred to as 'Sanjia Group') and its concerted action person Anhui Ruizhen Business Management Co., Ltd. (referred to as 'Ruizhen Business') will transfer a total of 26.993865 million shares (17.04% of the total share capital) held by the companies to Hefei Innovation Technology Venture Capital Co., Ltd. ('Hefei Innovation Investment') at a transfer price of 24.45 yuan per share, with a total price of approximately 0.66 billion yuan.

After the transfer, Hefei Innovation Investment will directly hold 17.04% of Wenyi Trinity Technology's shares, with the capacity to control 22.14% of the voting rights of Wenyi Trinity Technology, becoming the controlling shareholder of Wenyi Trinity Technology. Hefei Innovation Investment, as an investment segment of Hefei Chantou, will indirectly control it, gaining indirect control over Wenyi Trinity Technology, while Hefei State-owned Assets Supervision and Administration Commission, holding 100% of shares behind the scene, becomes the actual controller of the company.

This news once again focuses the market's attention on Hefei Chantou, an institution that has been hailed as the 'most outstanding venture capital' in recent years. So, why is Hefei Chantou planning to take over Wenyi Trinity Technology and how will it support the latter?

Burevestnik Hard Technology founder Bu Rixin told "Star Market Daily" reporters that Hefei Chantou's controlling stake in Wenyi Trinity Technology is to fill a key part of its semiconductor industry investment chain. Hefei Chantou, as a state-controlled acquisition of a listed company, is not just from a financial investment perspective, but more from the perspective of regional industrial development and support, supporting a leading enterprise in a specific sector to cultivate related industry chains.

"Star Market Daily" reporters noticed that since its listing in 2002, Wenyi Trinity Technology has changed its actual controller 6 times, plus this equity transfer, the company may change hands for the 7th time.

Hefei Industrial Investment intends to acquire a 0.66 billion stake in Wenyi Trinity Technology.

Established in 2000, Wenyi Trinity Technology was listed in 2002 and was once known as the "Number One Stock in Chinese Mold Industry." It is an enterprise engaged in the manufacturing of semiconductor equipment and devices, chemical building materials molds, and belt transportation systems. Its main products include plastic extrusion molds, electronic plastic sealing molds, stamped parts, plastic seal presses, T/F systems, and LED brackets.

In recent years, the company's business performance has been relatively stable. Public data shows that from 2022 to the first half of 2024, Wenyi Trinity Technology achieved operating revenues of 0.444 billion yuan, 0.331 billion yuan, and 0.156 billion yuan, respectively. During the same period, it realized net income attributable to shareholders of 0.026 billion yuan, -0.081 billion yuan, and 0.008 billion yuan.

Burson-Marsteller expressed that the semiconductor plastic packaging equipment sector where Wenyi Trinity Technology is located is not a traditional industry. This segmented sector is one of the key segments in semiconductors, with high-end core equipment monopolized by foreign manufacturers such as TOWA and YAMADA. Additionally, the automation level in this segment is very low, making it a labor-intensive industry, urgently in need of improving the intelligence and automation of equipment to enhance production efficiency. Therefore, Hefei Industrial Investment's proposed controlling stake acquisition of Wenyi Trinity Technology also fills a key link in the semiconductor industry chain.

At the same time, some semiconductor investors told the 'Star Market Daily' reporter that the field of sealing equipment where Wenyi Trinity Technology is located has great development potential. However, the company has been relatively weak in its development in recent years. Domestically focused companies in this field also include Naiker Equipment and Qixin Semiconductor.

A hard technology sector investor told the 'Star Market Daily' reporter that Hefei Industrial Investment's move this time is practical. 'Wenyi Trinity Technology has small revenue and net profit scales, with a not very large market cap and very low asset-liability ratio. The cost of acquiring a controlling stake is also low, and the semiconductor industry belongs to a strategic emerging industry. Hefei Industrial Investment may transform and upgrade the company.'

From Tongling State-owned Assets to Hefei State-owned Assets, Wenyi Trinity Technology has undergone 6 changes in controlling ownership in the past. Initially, the company's controlling shareholder was Sanjia Group, which was 100% owned by the Tongling State-owned Assets Operation Company. In 2003, the Tongling city government decided to restructure Sanjia Group and introduce strategic investors. Subsequently, the actual controller of Wenyi Trinity Technology changed from the Tongling State-owned Assets Operation Center, Tongling Industrial State-owned Assets Operation Co., Ltd., and Chen Denghua to the current Luo Qifang and Zhou Wenyu.

Hefei is building the semiconductor industry chain.

According to public information, Hefei Innovation Investment was established in August 2000, with Zheng Yongxiao as the legal representative. Its business scope includes 'risk investment, entrusted management of high-tech risk investment funds, enterprise mergers and acquisitions, and enterprise management consulting services.'

The sole controlling shareholder of Hefei Innovation Investment is Hefei State-owned Assets Holdings Co., Ltd., with Hefei State-owned Assets Investment Holdings Co., Ltd. and the State-owned Assets Supervision and Administration Commission of Hefei Municipality as indirect controllers.

Hefei Innovation Investment manages 41 funds and has been involved in 431 public investment events. Its investments in the semiconductor field include a series of enterprises such as Anhui Zhongke Chuanxin, Weijin Technology, and Chengleng Microelectronics. In addition, its layout covers multiple high-growth potential areas including robotics, new battery technologies, integrated circuits, as well as future frontier technologies like controlled nuclear fusion and quantum information.

Hefei State-owned Assets Investment Holdings Co., Ltd. is an important state-owned investment platform in Hefei, known as the 'most powerful venture capital city.' In March 2015, Hefei State-owned Assets Holdings Co., Ltd. and Hefei Industrial Investment Holdings Co., Ltd. merged to form Hefei State-owned Assets Investment Holdings Co., Ltd.

Hefei State-owned Assets Investment Holdings Co., Ltd. positions itself as an empowering investment and financing platform for promoting innovation and strategic emerging industries. It manages four provincial-level theme funds: Anhui Province New Materials Industry Theme Fund, Anhui Province Life Health Industry Theme Fund, Anhui Province Aerospace Information Industry Theme Fund, and Anhui Province Seed Fund Phase II Mother Fund. It also participates in the operation and management of two municipal-level theme funds led by the Hefei Municipal Government.

Currently, Hefei State-owned Assets Investment Holdings Co., Ltd. has established 61 independently managed funds with a total scale exceeding 100 billion yuan, investing in nearly a thousand companies. Among them, 51 projects have achieved IPOs or backdoor listings, and 25 companies have landed on the STAR Market. The total registered capital of the group is 17.577 billion yuan, and by the end of 2023, the total assets of the group have reached 90.2 billion yuan.

Hefei State-owned Assets Investment Holdings Co., Ltd. has publicly invested in 131 projects, with semiconductors being an important area. It has invested in projects like Changxin New Bridge, Haitu Microelectronics, CRRC Times Semiconductor, and Xinneng Semiconductor.

In September of this year, Hefei State-owned Assets Investment Holdings Co., Ltd. made a significant investment in Changxin New Bridge, completing a single investment of 8.22 billion yuan. Changxin New Bridge is one of the leading companies in the domestic storage industry.

In addition, in May 2016, Hefei Investment introduced the Changxin 12-inch storage memory wafer manufacturing base project. Relying on the leading role of Changxin, the group has laid out hundreds of upstream and downstream industrial projects in Hefei, including He Guang optical mask, Peidun Technology, and Xinfeng packaging and testing, forming an integrated circuit industry chain layout from materials, design, manufacturing to packaging and testing.

Behind Hefei Investment's layout in the semiconductor industry, it reflects that in recent years, Hefei has utilized investment methods to attract and nurture industries through the "investment-driven" model, strategically positioning emerging industries. Now, the Hefei integrated circuit industry cluster has been formed, attracting industry leaders such as JHICC, Tongfu Microelectronics, Huicheng Shares, Hengshuo Shares, and Qizhong Technology to gather here.

Currently, Hefei is steadily moving towards the goal of becoming the "China's IC Capital." In 2023, the city's integrated circuit industry revenue reached 44.88 billion yuan, with 458 companies and 0.032 million employees.